Economics Definitions Quiz

What does abatement technology refer to?

• A technology that increases production efficiency.

• A production technology that reduces or prevents pollution.

• A method to enhance the use of natural resources.

• A system to manage waste after production.

Who has an absolute advantage in production?

• A person who can produce more with fewer resources.

• A person who can produce more than another person.

• A person who can produce at the lowest cost.

• A person who has the most advanced technology.

What is after-tax income?

• Total income before tax payments by households to governments.

• Total income including tax payments by households to governments.

• Total income minus tax payments by households to governments.

• Total income minus tax refunds from governments to households.

What is allocative efficiency?

• Producing goods at the highest possible cost for maximum benefit.

• Producing goods without considering the cost or benefit.

• Producing goods at the lowest possible cost without sacrificing quality.

• Producing goods at the lowest possible cost and in quantities that provide the greatest possible benefit.

What is the purpose of anti-combine law?

• To regulate monopolies and prevent them from splitting into smaller companies.

• To encourage the formation of monopolies and oligopolies.

• To regulate oligopolies and prevent them from becoming monopolies or behaving like monopolies.

• To dissolve all forms of business combinations.

What does the average cost pricing rule entail?

• Setting the price below average total cost to maximize profit.

• Setting the price above average total cost to cover unexpected expenses.

• Setting the price equal to average total cost, including normal profit.

• Ignoring the average cost when setting the price of a product.

What is average fixed cost?

• Variable cost per unit of output.

• Total cost per unit of output.

• Total fixed cost per unit of output.

• Average variable cost per unit of output.

How is average product calculated?

• Total product divided by the price of the factor employed.

• Total product divided by the quantity of the factor employed.

• Quantity of the factor employed divided by the total product.

• Price of the factor employed divided by the total product.

What does average total cost represent?

• Total variable cost per unit of output.

• Total fixed cost per unit of output.

• Total cost per unit of output.

• Average profit per unit of output.

What is average variable cost?

• Total fixed cost per unit of output.

• Total cost per unit of output.

• Total variable cost per unit of output.

• Average fixed cost per unit of output.